Acuity Funds Ltd. has filed a final prospectus for the initial public offering of up to a maximum of 12 million units of Acuity Diversified Total Return Trust at $10 per unit.

The offering will close on February 16.

Acuity Investment Management Inc. will provide investment advisory and portfolio management services to the closed-end investment trust.

The trust will invest in an actively managed diversified portfolio of securities consisting primarily of units of income funds and to a lesser extent equity securities, including primarily dividend paying shares, which Acuity believes have the potential for growth. From time to time, Acuity may change the proportion of income funds to equity securities to reflect market conditions.

The trust will annually determine and announce each March an indicative distribution amount for the following 12 months based upon the prevailing market conditions and the manager’s estimate of distributable cash flow for the year. The indicative distribution for the first 12 months of the Trust is 70¢ per unit representing a yield of 7% based on the $10 per unit issue price. The trust may make additional distributions in any given year.

Acuity was formed in 1990 and, as of January 31, 2006, had assets under management of approximately $8 billion, of which approximately $3 billion were invested in the income fund sector.

The syndicate of agents for this offering is being led by CIBC World Markets Inc. and includes RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corp., Desjardins Securities Inc., Dundee Securities Corp., Raymond James Ltd., Wellington West Capital Inc., Berkshire Securities Inc., Blackmont Capital Inc., GMP Securities L.P. and IPC Securities Corp.